How To Sell Your House Without A Realtor
When it comes time to sell your home, you’re often faced with the decision of whether to work with a realtor or not. Most people at least consider selling their homes themselves to avoid high commission fees and hidden fees. In this blog, we’ll cover what you need to learn about how to sell your house without a realtor.
Selling Your Home On The Market Without A Real Estate Agent
Posting your home on the real estate market is similar to what real estate agents do. You’ll post pictures, hold open houses, put a for sale sign in the yard, etc. Most people will make an extra effort to sell a house fast. Doing it yourself can save you money, but there are a few things to keep in mind when considering a DIY home sale.
There are several pros to putting your home on the market without a real estate agent, such as:
- Work one on one with potential buyers to make sure that a future homeowner will take care of the house
- Save money on fees, including commission fees
- You’ll have to implement your own strategies to learn how to attract home buyers
There are several drawbacks to taking this route. One of the main downsides of not working with a real estate professional is that you miss out on key knowledge and market information. Real estate agents know more about home value, how to reach potential buyers, and how to sell a home. Other downsides include:
- Having to negotiate with low ball offers (usually real estate agents will do that for you)
- Staging a home for an open house is tedious
- It’s time-consuming to take pictures, stage the home, vet applicants, talk to potential buyers, etc.
- You don’t have access to the same network of home buyers that a real estate agent does
Selling A Home To A Cash Buyer
Selling your home to a cash buyer can eliminate some of the stress that goes hand in hand with selling a home without a real estate agent. However, that’s only if you already know a cash buyer. If you don’t you’ll run into many of the same pros and cons of putting your house on the market without a real estate agent.
The main advantage to working with a cash buyer without a real estate agent is that homeowners will save money on commission fees. They also don’t have to worry about a sale falling through as much as they do when a buyer is applying for financing.
- Saves money
- A cash buyer eliminates the possibility of financing, and the sale, falling through at the last minute
- Cash buyers often take into account upgrades, such as solar panels, when negotiating a price
- Cash buyers offer you the opportunity for a quick sale
There are several disadvantages to working with a cash buyer without a real estate agent, especially if you are selling a home for the first time. You’ll discover that you have to find a cash buyer, figure out how the process of selling a home works, and more. Some potential drawbacks of taking this route include:
- Cash buyers are known for low-ball offers
- Cash buyers tend to have more of an ego because of the adage that cash is king
- Navigating through closing costs, paperwork, etc.
- If you don’t know a cash buyer, you’ll still have to do everything necessary to put your house for sale on the market to find a cash buyer
Working With A Real Estate Attorney
Selling your home without a realtor often involves working with a real estate attorney. This can help first-time sellers make sure that they are following local real estate laws, and completing all necessary paperwork. It’s common to work with a real estate attorney if you are selling a home to someone that you know.
There are several advantages to working with a real estate attorney when selling your home. Some of these include:
- Real estate attorneys will carefully review contracts to make sure that everything is covered, such as who is paying the closing costs
- A real estate attorney can help you learn the process of selling a home, and navigate through this process, much like a real estate agent can
- They will always keep your best interests in mind
In addition to the advantages of working with a real estate attorney, there are several drawbacks.
- A real estate attorney does not know the market like a real estate agent. They are not aware of current housing prices or market trends. Instead, they only focus on real estate law.
- If you don’t know someone to sell the home to, you’ll still have to work to put your house on the market and find a buyer
- The cost of real estate attorney fees can be similar to the commission you would pay a real estate agent
- Real estate attorneys do not help you sell your home. They help you navigate the legal process. That means that you’re on your own when it comes to open houses, staging the home, taking pictures for the listing, etc.
Selling To An iBuyer
Selling to an iBuyer like OfferPad or Opendoor can be tempting. These revolutionary real estate agent alternatives make the selling process seamless and are known for giving homeowners a quick closing date. There are several things to keep in mind before working with an iBuyer. Make sure to read Opendoor reviews before getting an estimate.
- The fast closing date makes this a great choice for people that want to sell their homes fast
- The company will help you navigate through the selling process. They have real estate agents available that can explain things to first-time sellers, such as what closing costs are, etc.
- Can sell homes as-is
- Many companies also offer moving services
There are a few downsides to watch out for when working with an iBuyer. While these services can benefit a lot of people, it’s always important to look at the downside before working with them.
- iBuyers often give less than market value for homes
- They only buy homes in certain residential areas
- These services are known for charging more for repairs than the repairs would normally cost the homeowner
- Do not take upgrades into consideration when estimating the value of a home
- Homeowners might find that the process requires more than the company initially lets on. First, you have to request an estimate. Then, you will schedule and complete an inspection. At the inspection, the company will determine which repairs need to be made, and only some companies will allow the homeowner the opportunity to make the repairs. Then, they will give you a final offer, which is typically much lower than the initial offer you received. After that, you can either accept or reject the offer.
- iBuyers have become known for being more deceitful to entice potential customers into selling their homes. For example, when Opendoor was fined by the FTC.
- iBuyers are known for charging fees. While many of them state that the amount they charge is less than the commission a real estate agent charges, a comparison often reveals that a homeowner pays almost the same amount.
- Most homeowners wind up losing money because of the fees, additional repair costs, and lower value stated of the home when compared to how much money they would make if they had placed their home on the market.
Working With A Real Estate Investor
A real estate investor is different than a real estate agent or homebuyer. Real estate investors often work with homeowners that want to sell their homes on an individual basis and will pay a fair price for the home. Then, they use that home as a rental to generate income or flip the house to make a profit.
There are quite a few advantages to selling your home to a real estate investor, such as:
- Real estate investors offer a price closer to fair market value when compared to iBuyers
- They will take upgrades, such as a bathroom remodel or solar panels, into consideration
- They tend to be more personable than larger businesses, such as iBuyers
- Real estate investors have experience both buying and selling homes, so they can help you navigate through the process
While real estate investors are usually a great choice, there are a few things to consider when deciding if a real estate investor is right for you.
- Real estate investors tend to be pickier when deciding which houses to buy because they want to make sure that they can make a profit off of the house
- Most real estate investors only purchase homes in specific areas
Things To Consider When Deciding How To Sell Your Home
There are plenty of options for homeowners that want to sell their house without a real estate agent. Take the time to consider every option available, and what you need in the sale of your home, to decide which route is going to work for you.
If you have previous experience selling houses or as a real estate agent, putting your own home on the market will be easier for you than for someone with zero experience. You already know how to find potential buyers, which angles make the perfect picture for listings and how to stage a house.
In addition to that, you’ll already have experience in dealing with the paperwork, and will know how to deal with closing costs.
If you don’t have previous experience, it might be a good idea to consider other options that are less stressful.
How fast you want to close the sale can instantly determine which route you should take.
Placing a home on the market can result in either a quick sale or in the house sitting on the market for months.
Companies that are known as iBuyers offer the quickest closing dates, which makes them ideal for people that need to sell their houses fast.
Real estate investors are a great middle option. They don’t offer the fastest closing date, but they aren’t going to waste months of your time while they decide whether they would like to buy the house.
How Much Money You Want To Make
When deciding which route to take, consider whether you want to earn the most possible money from the sale or if you are okay with losing money.
Homeowners that work with iBuyers often make less money than if they were to sell their house on the market. Selling a home on the market often provides the highest return on investment, but these sales can take longer.
Figuring out how important a high return on your investment is to you can help you decide how to sell your house without a realtor.
Selling your home without a real estate agent can help you save money depending on the route that you choose to take. These are the most popular options. Make sure that you know everything you need to know before putting up a for sale sign, like how to sell a house fast.